On February 19, 2026, the South Korean stock market reached an extraordinary milestone, with the benchmark KOSPI index hitting a fresh all-time high of 5,677.25.
Following the three-day Lunar New Year holiday, the market surged 3.09% in a single day, fueled by a massive rally in technology and semiconductor stocks. The KOSPI has now risen more than 34% since the start of 2026, making it one of the world’s top-performing indices this year.
Key Drivers of the Record High
The rally is being described as a “perfect storm” of technological breakthroughs, domestic reform, and global AI demand.
- Samsung’s “HBM” Breakthrough: Samsung Electronics shares surged nearly 5% to hit a record high (reaching the “190,000 won” milestone) following reports that it is negotiating the sale of a new generation of High Bandwidth Memory (HBM) chips for $700 per unit—a 20-30% premium over previous models.
- The “Corporate Value-Up” Effect: Investor sentiment is being heavily buoyed by the government’s Corporate Value-Up Program. New amendments to the Commercial Act, including the mandatory cancellation of treasury shares, are expected to significantly reduce the “Korea Discount” and improve shareholder returns.
- Institutional Buying Spree: Local institutions were the primary engine of today’s rally, net buying ₹1.6 trillion won (approx. $1.2 billion) worth of shares as they rotated capital into the booming tech sector.
- Global AI Optimism: Gains on Wall Street—specifically in Nvidia and Amazon—following the Federal Reserve’s recent meeting minutes have eased fears of an “AI bubble,” encouraging investors to double down on Korea’s critical role in the global AI hardware supply chain.
Market Performance Summary (Feb 19, 2026)
| Index / Stock | Closing Price / Level | Day’s Change | Year-to-Date Change |
| KOSPI Index | 5,677.25 | +3.09% | +34.7% |
| KOSDAQ Index | ~1,100+ | +4.9% (approx) | Strong Recovery |
| Samsung Electronics | 189,500 KRW | +4.86% | +51% |
| SK Hynix | ~245,000 KRW | +1.59% | +35% |
Extraordinary Market Measures
The rally was so intense that the Korea Exchange (KRX) had to activate a “Sidecar” (a stock market circuit breaker) on the junior KOSDAQ index for five minutes after the KOSDAQ 150 futures jumped more than 6%.
Geopolitical & Economic Context
- Martial Law Aftermath: The market’s resilience is particularly notable following a period of political turbulence. On the same day as this record high, a South Korean court sentenced former President Yoon Suk Yeol to life in prison for his attempted martial law declaration in late 2024.
- Resumption of Short Selling: The market is also operating in a new regulatory environment. A five-year ban on short selling was fully lifted in 2025, but new real-time detection systems (NSDS) have been implemented to prevent illegal “naked” short selling, which has increased foreign investor confidence.
